Recently, domestic polysilicon prices have remained stable at high levels. The current quotation is 30,500-30,700 yuan/ton, an increase of 8,500 yuan/ton or 38.64% from the beginning of the year. In the ten-year perspective, the price has been at high position. Major manufacturers say that orders for this month have already been signed, and orders for July are also being signed one after another. Since the fire incident at the 200,000-ton sealant device of Hesheng Silicone Industry in Shihezi, Xinjiang at the beginning of the month, organic silicon has rapidly jumped by 4,000 yuan/ton to a high of 30,000 yuan/ton. Mainstream domestic manufacturers have not accepted orders and have closed the market without reporting. This has added fuel to the fire of the silicone industry, which is already experiencing a shortage. Industry insiders predict that the current tight supply and demand situation will most likely continue until around the third quarter. Coupled with equipment maintenance at major manufacturers and intensive safety inspections, silicone prices will remain high for a long time.
It is understood that price increases due to supply-side tightening and continued low market inventories are not uncommon in the chemical industry. Since the outbreak of the epidemic early last year, the chemical industry has been hit hard. Enterprises start and stop work at irregular intervals. Prices are still rising today, but they may no longer quote tomorrow. You can still get the goods in full today, but you may have to wait in line for two months tomorrow. This unpredictable and crazy market has no intention of dying down. PTA, PP, PE and other products have all fallen into the “abyss” of tight supply and rising prices.
Frequent maintenance will reduce the output of many domestic chemical companies in the second half of the year
In the second half of 2021, many chemical companies have maintenance plans for their equipment, mostly concentrated in Around the third quarter, the domestic chemical market is expected to be in short supply, and prices will remain fluctuating at a high level.
Around July, Xisa Chemical and Jilin Petrochemical’s phenolic and ketone plants are scheduled to be shut down for maintenance, and the supply side will shrink to a certain extent.
Taiwan’s Xinchang phenolic ketone plant plans to shut down for maintenance from June to July, and will have spot sales at the end of July.
Line 2 and Line 4 of Kumho Phenol Ketone Plant in South Korea are taking turns for maintenance, and are scheduled to be shut down for maintenance from August 21st to September 11th.
South Korea’s LG’s 480,000 tons/year phenolic and ketone plant in Dashan plans to shut down for maintenance from October to November.
Thailand’s PTT Phase II phenol-ketone unit plans to start maintenance in September and is expected to last about one month. By then, the supply of goods from South Korea and Thailand will decrease in the third quarter, and the volume arriving in China may be expected to decline.
Shandong Yuhuang’s 250,000 tons/year styrene plant plans to shut down before June 27 and undergo maintenance for 25 days.
A large styrene plant in South China unexpectedly shut down on June 21, and the plant underwent unplanned maintenance, which had an impact on the short-term supply of styrene.
Ningbo Formosa Plastics’ PP plant has a 170,000-ton/year first line and a 280,000-ton/year second line. They will be shut down for maintenance from June 15th to July 20th.
Jiangxi Jinghao’s 500,000-ton soda ash plant will be inspected for 15 days in late July.
Inner Mongolia Jilantai soda ash plant will reduce the load on June 26 and start maintenance for seven days on July 26.
The Taiyuan Chemical New Materials PA6 unit of Yangmei Coal Group announced a 50-day maintenance period.
Shanxi Lubao PA6 plant will be shut down for maintenance for 20 days starting from June 10th.
A fire broke out in the special PVC equipment of Formosa Plastics in Texas, and the force majeure will last until August.
The PTA unit of Honggang Petrochemical was overhauled in July, and the overall maintenance volume is still high. The new unit Yisheng New Materials may be put into production in mid-July. The operating rate of PTA was 82.14%, and the maintenance capacity reached 10.365 million tons.
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Whether it is the tightening of production capacity caused by shutdown and maintenance, or the inability to produce and supply normally due to force majeure, there is no doubt that the source of chemical production has been strangled and the output has been reduced. This will further aggravate the current shortage of supply and demand. June is Safety Month. Since the beginning of the month, many provinces, cities and regions have been tightening the management of hidden safety risks. Especially for the chemical industry, special rectification efforts have continued unabated. Many chemical companies are in the process of “relocation” due to factors such as environmental protection and safety failure. Coupled with the continuing impact of the epidemic, the chemical industry is already in an unstable state, with prices continuing to rise and even set new historical records. Under the current unpredictable situation, the anxiety of chemical workers will only aggravate the rush to buy. Chemical workers said that they still cannot relax at all in the second half of the year. Not only do they not dare to hope for bargains, they just want to snap up enough supply to ensure normal production.
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